January 4, 2018 / 7:52 AM / a year ago

ASIA CREDIT CLOSE: Credits steady amid bidding tone in subdued market

SINGAPORE, Jan 4 (IFR) - Asian credits were steady in muted Asian markets as market participants slowly returned to their desks after the year-end holidays.

“It is just the start of the year, but we do see better buying reflected across all asset classes,” said one trader. “Trade is still subdued on a lack of new issues, but, next week, we should see activity picking up.”

Swire Properties and Commonwealth Bank of Australia were the only two issuers to price bonds in the first week of January. Both issues were very tightly priced and attracted few bids, said the trader.

Swire’s new 2028 Green bonds were seen at around 1bp tighter from reoffer spread of 110bp over US Treasuries, while CBA’s 144A 30-year Tier 2 notes were around 152bp, just a touch inside reoffer spread of 153bp.

Asian credit spreads narrowed about 2bp with the iTraxx Asia ex-Japan investment-grade index seen at 65bp/66bp, about 4bp tighter on the week. South Korea’s 5-year CDS was 2bp tighter at 50bp/51bp.

North Korea was reported to have reopened the border hotline with South Korea, raising hopes of a formal dialogue between the two countries.

Reporting by Kit Yin Boey; Editing by Dharsan Singh

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